Revenues by Microsoft Division

Windows sales have declined over the last two years, while Microsoft’s other enterprise businesses have grown. Revenue is shown here for the last three Microsoft fiscal years, for the five divisions whose results are reported in Microsoft’s earnings statements. (Microsoft fiscal years end June 30; amounts are billions of U.S. dollars.)

The Windows and Windows Live division develops the Windows PC OS and operates supporting online services such as Microsoft Account (formerly Windows Live ID) and Outlook.com (formerly Hotmail). It also is responsible for Surface and most Microsoft hardware other than the Xbox console line. The division’s revenue has declined over the past two years, in part because of slowing consumer PC sales affected by tablets. (Some of the decline in 2012 is due to deferral of US$564 million into fiscal 2013 to account for a Windows 8 upgrade program.)

The Business division’s major products include the Office suite; related servers such as Exchange Server, SharePoint Server, and Lync Server; the Dynamics products; and the Office 365 cloud services. The Server and Tools division’s major products include Windows Server, SQL Server, System Center, and the Windows Azure and Windows Intune cloud services. Both divisions have seen steady growth recently, thanks in part to success at selling their products on annuity contracts such as the Enterprise Agreement.